Design thinking as an enabler of innovation: Exploring the concept and its relation to building innovation capabilities

This thesis deals with the concept of Design thinking (DT) and the building of innovation capabilities. DT has emerged as a management concept promising innovation inspired by design. However, the concept is poorly conceptualized and scarcely investigated in organizational settings, especially in relation to its potential role as an enabler of innovation. Building on empirical studies of companies claiming to use DT, the thesis aims at providing a better understanding of the concept, how it is used in innovation work, and its role in building innovation capabilities in large firms. The studies show large variety in the understanding and use of the concept, and its integration in and adaptation to existing practices. The concept of DT seem to be somewhat stuck in between the fields of innovation and design. On the one hand the concept can be seen as (over)simplifying the complexity of design practice; on the other hand, the results of this thesis show that use of DT is aligned with several practices highlighted by innovation scholars. The thesis makes two main theoretical contributions. First it argues for a performative perspective on DT that does not focus on what DT is or what value it has, but rather what it becomes and what it can do in various settings; thus putting focus on context. A conceptual model for how to understand DT as a boundary object is proposed, consisting of five core principles associated with a set of principles, practices, and techniques. It takes account of the fact that DT takes different shapes in different contexts, and accommodates to a variety of ways of applying and using DT. Second it argues that DT can play a role in building innovation capability in large firms. The studies show how a range of perceived values and effects of using DT are connected to elements presented in innovation capability theory; resources, processes, mindset and a strategic intent to innovate. It is argued also that the current status of the innovation capability of a firm can hinder or enable use of DT and the competences built, thereby influencing potential value resulting from its use. There are few previous examples in the literature of how innovation capabilities are built, and this thesis adds a new approach; building innovation capability through the long-term use of DT, and in interplay with the current capability of the organization. The thesis shows that the perceived effects of using DT go beyond practical innovation work, and argues that when managers consider using DT, it is critical to not consider the concept in isolation, or demand results too fast, but rather to take a systemic perspective, considering all aspects of resources, process and mindset. The thesis also paves the way for more research, both on the use of DT and on how innovation capability can be built

Absorbing customer knowledge: how customer involvement enables service design success

Customers are a knowledge resource outside of the firm that can be utilized for new service success by involving them in the design process. However, existing research on the impact of customer involvement (CI) is inconclusive. Knowledge about customers’ needs and on how best to serve these needs (articulated in the service concept) is best obtained from customers themselves. However, codesign runs the risk of losing control of the service concept. This research argues that of the processes of external knowledge, acquisition (via CI), customer knowledge assimilation, and concept transformation form a capability that enables the firm to exploit customer knowledge in the form of a successful new service. Data from a survey of 126 new service projects show that the impact of CI on new service success is fully mediated by customer knowledge assimilation (the deep understanding of customers’ latent needs) and concept transformation (the modification of the service concept due to customer insights). However, its impact is more nuanced. CI exhibits an “∩”-shaped relationship with transformation, indicating there is a limit to the beneficial effect of CI. Its relationship with assimilation is “U” shaped, suggesting a problem with cognitive inertia where initial learnings are ignored. Customer knowledge assimilation directly impacts success, while concept transformation only helps success in the presence of resource slack. An evolving new service design is only beneficial if the firm has the flexibility to adapt to change

Early Involvement of Industrial Designers in Product Development: Exploring Motives and Challenges

The ability to develop and market products that customers value determines a firm’s competitiveness, and product development that aims at competitive advantage must addressdevelopment efficiency in a conscious way. From a strategic point of view, improvements in the early phases of product development, before a development project is launched, areemphasized, and there is a need to study the best way to organize front end teams, and what personal qualities are likely to facilitate front end performance.The role of industrial designers as mainly giving shapes to products has evolved, and both design scholars and practitioners advocate that the skills and practices of industrial designers can contribute to a better understanding of end-users and to creating solutions to their needs.Yet few firms fully understand where, how and when they can actually use design, which results in a fragmented design effort, and the organization does not achieve the full benefits from the possibilities with design.This thesis sets out to investigate the role of industrial designers in the early phases of product development, and takes its point of departure in an empirical study of two industrial manufacturing companies in Sweden and their internal and external design partners. The thesis deals with what motives companies might have for this early involvement and factors affecting design collaboration on an individual and inter organizational level.The results of this study showed three principal motives for companies to involve industrial designers in the front end: involving for innovativeness, involving for customer understanding, and involving for process facilitation through visualization. The thesis also showed manychallenges for a company setting out to include design in the front end. Key factors that were found to affect collaboration were generally of two types: related to the different professional cultures involved, and related to the position of design in the company. The main contributionof the thesis is that it offers an understanding of the use of industrial designers in a context that has been scarcely studied: the combination of industrial designers in the front end of product development in “non-designerly” companies. Rich case study examples illustrate bothpossible benefits and pit holes along the way

Early Involvement of Industrial Designers in Product Development: Exploring Motives and Challenges

The ability to develop and market products that customers value determines a firm’s competitiveness, and product development that aims at competitive advantage must addressdevelopment efficiency in a conscious way. From a strategic point of view, improvements in the early phases of product development, before a development project is launched, areemphasized, and there is a need to study the best way to organize front end teams, and what personal qualities are likely to facilitate front end performance.The role of industrial designers as mainly giving shapes to products has evolved, and both design scholars and practitioners advocate that the skills and practices of industrial designers can contribute to a better understanding of end-users and to creating solutions to their needs.Yet few firms fully understand where, how and when they can actually use design, which results in a fragmented design effort, and the organization does not achieve the full benefits from the possibilities with design.This thesis sets out to investigate the role of industrial designers in the early phases of product development, and takes its point of departure in an empirical study of two industrial manufacturing companies in Sweden and their internal and external design partners. The thesis deals with what motives companies might have for this early involvement and factors affecting design collaboration on an individual and inter organizational level.The results of this study showed three principal motives for companies to involve industrial designers in the front end: involving for innovativeness, involving for customer understanding, and involving for process facilitation through visualization. The thesis also showed manychallenges for a company setting out to include design in the front end. Key factors that were found to affect collaboration were generally of two types: related to the different professional cultures involved, and related to the position of design in the company. The main contributionof the thesis is that it offers an understanding of the use of industrial designers in a context that has been scarcely studied: the combination of industrial designers in the front end of product development in “non-designerly” companies. Rich case study examples illustrate bothpossible benefits and pit holes along the way

Design thinking in innovation, in practice: the case of Kaiser Permanente

Design Thinking (DT) as an innovation approach is gathering interest in management and scholarly debates, yet its potential contribution to innovation is vague, and a holistic view on innovation in DT-related literature is lacking. This paper investigates the integration of DT in a large organization, in order to understand its potential contribution to innovation. It is based on a qualitative case study of Kaiser Permanente that is using DT since ten years. Two examples of use are presented and analyzed using the Discovery-Incubation-Acceleration framework for describing innovation competencies (O’Connor and Ayers, 2005). The paper presents three main findings: first, it shows that DT is used in all aspects innovation to various extent, contradicting the view that DT is useful mainly in the front end. Second, it shows overlap between DT and improvement science, questioning the view that incorporating design in managerial settings is difficult due to a clash between logics. Third, the paper puts focus on individuals and teams using DT, opening up for a competence perspective and a discussion of the embodied experience of design thinkers

Identifying Latent Needs: Towards a Competence Perspective on Attractive Quality Creation

Achieving customer delight is at the heart of the quality paradigm, acknowledging the importance of understanding latent needs. While quality researchers have been focusing on methods for classifying attributes that meet already defined requirements, the process of identifying latent needs is seldom addressed. This paper attempts to operationalize attractive quality creation in its earliest stage by focusing on how to identify latent needs. The design literature takes a different approach to understanding latent needs, interpreted by the author as a ‘competence perspective’. Inspired by the competencies attributed to designers, this paper introduces this perspective into the investigation of attractive quality creation. Drawing on the theory of attractive quality, an analytical framework is proposed for investigating how a competence perspective in general, and design competencies in particular, may contribute to the identification of latent needs. It was discovered that while design competencies related to mindset seem to play important roles for the identification of latent needs, the quality literature – and in particular the literature on customer orientation - tends to be tool-oriented and lacks focus on mindset. Although many design competencies seem useful for understanding latent needs, it is questioned whether these are linked to specific professions

Design thinking in innovation, in practice: the case of Kaiser Permanente

Design Thinking (DT) as an innovation approach is gathering interest in management and scholarly debates, yet its potential contribution to innovation is vague, and a holistic view on innovation in DT-related literature is lacking. This paper investigates the integration of DT in a large organization, in order to understand its potential contribution to innovation. It is based on a qualitative case study of Kaiser Permanente that is using DT since ten years. Two examples of use are presented and analyzed using the Discovery-Incubation-Acceleration framework for describing innovation competencies (O’Connor and Ayers, 2005). The paper presents three main findings: first, it shows that DT is used in all aspects innovation to various extent, contradicting the view that DT is useful mainly in the front end. Second, it shows overlap between DT and improvement science, questioning the view that incorporating design in managerial settings is difficult due to a clash between logics. Third, the paper puts focus on individuals and teams using DT, opening up for a competence perspective and a discussion of the embodied experience of design thinkers